Comments on Naheed Amdani, Attorney: Condominium Assessments When Buying Foreclosures

Hi Lauren, Unfortunately, no. But when the bank ...

2012-01-13T11:34:09.423-06:00

Hi Lauren,

Unfortunately, no. But when the bank sells the unit to someone else, that new buyer could be liable for up to six months of past due assessments (for the period before the bank took ownership).

Hi - I'm on a condo board and past-due assess...

2012-01-13T10:31:31.838-06:00

Hi -

I'm on a condo board and past-due assessments are owed on a unit. The unit owner transfered the title to the bank pursuant to a deed-in-lieu. Is the bank now responsible for the past-due assessments?

Thanks,

Lauren

Hi E. Michaels, I am not personally aware of anyo...

2012-01-09T14:00:16.783-06:00

Hi E. Michaels,

I am not personally aware of anyone challenging a condo association on this matter, although I agree that some associations do abuse the law. I don't practice this sort of litigation though.

As a property buyer at Auctions, I am seeing condo...

2012-01-04T18:16:53.595-06:00

As a property buyer at Auctions, I am seeing condo associations abuse this law regarding the 6 months unpaid assessments pretty badly.
Are you aware of anyone challenging condo associations in court on this and would you like to try on my behalf?

Technically, the association has to eat it. But i...

2011-09-07T14:38:01.890-05:00

Technically, the association has to eat it. But in practice, I've seen associations bill the whole thing to the seller (the lender) when the unit is being sold, and lenders usually pay it. I have also seen associations that actually don't bill that time frame to anyone, and just eat the cost.

Who is responsible for back assessments in the tim...

2011-09-02T14:27:28.056-05:00

Who is responsible for back assessments in the time period after the date of an association's judgment for possession/money and the 1st day in the month after the month in which a bank forecloses? I guess the Assn eats if the bank doesn't own yet?

It sounds like the developer's lender doesn...

2011-05-24T14:28:00.625-05:00

It sounds like the developer's lender doesn't even own the property yet! And in the future, if the lender owns 75% of the property, how are you going to get a special assessment passed anyway?

Hi Naheed - great blog. Very informative. I am ...

2011-05-22T13:41:18.227-05:00

Hi Naheed - great blog. Very informative.

I am considering buying a single unit at an auction. I understand that I may be liable for 6 months of assessments if the association filed suit to collect them. However, 75% of the units still appear to be owned by the developer, and its lender has filed a foreclosure action against the developer.

A receiver is in place for the building and all is functioning appropriately. I am concerned about future special assessments. If only 25% of the building is owned by actual individuals (and not the developer or mortgage in possession lender), is there a way that I could prospectively get hit with massive special assessments disproportionate to my pro rata share (i.e., if the mortgagee in possession stops paying or caring for the property)? Is the developer's lender on the hook for the assessments for the units it is in MIP status over?

Thanks!

You have a number of very specific questions relat...

2011-05-09T14:36:22.900-05:00

You have a number of very specific questions related to your client, for which I cannot provide answers in this forum. What I can tell you is that once a lender takes over the property, it is responsible for all assessments from the first day of the month following the month in which it took over, up through the date it sells the property. If you need specific legal advice, you will have to schedule a consultation.

I have a question-getting a bank foreclosed listin...

2011-05-07T00:55:58.586-05:00

I have a question-getting a bank foreclosed listing with a self managed unit shortly which does not seem to use attys until they have to. Assessments are 141/mo. Sheriff auction was AUG 2010. I do no think there was a legal action but do not know. Have been given a demand letter of 4220-which includes all late fees, and some plumbing fees since interior pipes between units broke-common insurance for some reason is not picking up the tab for shared piping. But-asset mgmt co was not aware of the 6 month rule-thanks for the prior info on sections for them to read. My question is-if their was a legal action prior to the sheriff sale-say in Feb 2010-who pays the assessments from Feb-thru Aug 2010? All the legalese says late assessments from file date, not auction date? Is there a difference? And does the bank now have to pay these all late fees and plumbing fees? What happens if the association will not convey unit? I am trying to get this association to use an atty so they and the bank can talk. The treasurer has recently closed 2 short sales and I cannot convince her that they are 2 distinctly different closings. Thanks for your help.

You appear to have a number of issues going on -- ...

2011-05-03T11:53:27.135-05:00

You appear to have a number of issues going on -- bankruptcy, foreclosure, and a forcible suit, Additionally, someone else appears to be living in your condominium. You should probably speak to the attorney handling your bankruptcy (or the attorney handling your foreclosure or forcible, if it's a different attorney) for advice based on your exact circumstances.

I filled a chapter 13 a year ago and foreclosed my...

2011-05-03T09:43:01.991-05:00

I filled a chapter 13 a year ago and foreclosed my condo here in IL. I got a notice of sale, confirmation of sale and now i just got a letter of motion of sale? now my question is how more notices should i get before the sherrifs because from what i was told by the condo association that i am still in the post petition and liable for all the monthly assessments until they have got a noticed from the sherriff's department.. which means eviction?

I am not staying on that condo anymore and cant pay these assessments fees. I even checked up on the condo and someone is already living in there.. am i still liable to pay the assessments? thanks for your help in advance..

Hi Booksdates, I'm not sure what you mean by ...

2011-04-26T16:03:42.855-05:00

Hi Booksdates,

I'm not sure what you mean by a "transferable" assessment. I would guess that your association wouldn't mind "transferring" the assessment to your bank, so long as they get paid when the bank takes over. Most associations don't care if you pay them or your bank does or Mickey Mouse does, as long as they're getting paid! Ask your bank what they mean by "transferable".

Hi Adel, As the buyer of a foreclosure property, ...

2011-04-26T15:52:49.969-05:00

Hi Adel,

As the buyer of a foreclosure property, under state law you are responsible for up to six months of back assessments (for the six months prior to when the association filed suit). The bank is liable for the assessments from the first day of the month after the month in which it forecloses its borrower.

What, if anything, you are liable for will depend on a number of items. You may want to contact the attorney who helped you with your purchase, since he or she is familiar with the details of your file. There may be some legal recourse available to you, but without further review, it is impossible to say.

thx for this blog as i find it to be very helpful ...

2011-04-26T10:04:47.873-05:00

thx for this blog as i find it to be very helpful given my current situation, naheed. i am a licensed real estate agent in illinois and a current condo owner trying to sell my place as a short sale in the hafa program. i have until mid june per my contract with the lender to do such. if i am not able to find a buyer a deed in lieu has been suggested as an alternative. there is also a special assessment in our association that has not been paid off. my lender has agreed to paying it if it is "transferable". in my condo's by-laws i see nothing that addresses a transfer. also in the illinois condo property act i know of no such clause. my question is would it be common practice for an association to have a clause stating that in a lieu that an assessment would not be transferable? thx in advance for your insight and timely response

HI Naheed, I recently bought a property from cour...

2011-04-15T16:47:34.626-05:00

HI Naheed,

I recently bought a property from court judicial sales, have no keys and the assoc. property manager service is charging us 9,000.00 in late and special assess fees. They claim this should have been taken care of in closing - but I did not have any closing and the regulas assess for this bldg. is only 229.00 per month. do I have any legal rights here or do I have to pay to received the common keys.
Thanks,

Adel S.

Hi Colleen, Under the Condo Act, the Buyer is lia...

2011-04-05T13:47:25.309-05:00

Hi Colleen,

Under the Condo Act, the Buyer is liable for up to six months of back assessments. However, in many instances, the Buyer and Seller reach another agreement to facilitate the transaction. Since you are represented by counsel, I suggest you discuss this with your attorney!

We are in the process of buying a condo (that was ...

2011-04-04T14:49:10.737-05:00

We are in the process of buying a condo (that was foreclosed) and are supposed to close in a couple of weeks. Our contract states that the seller is supposed to pay all back assessments. When we got the Section 22.1 disclosure we saw that there were back assessments but our lawyer assured us that the sellers would pay them.

Today we have been asked by the seller to pay $6,000 in back assessments. Apparently, the condo association told the seller that the buyer is liable for this amount of money and our lawyer is still not sure why the association made this decision. The problem is that assessments on our unit are only $362 per month. Does the condo association have the authority to tell the seller to require us to pay 6k in assessments? Does the contract trump the law that says that buyers are responsible for 6 months of assessments before the foreclosure?

Hi Eric, The statute does not specifically refer ...

2011-03-31T13:39:57.520-05:00

Hi Eric,

The statute does not specifically refer to legal fees in reference to back assessments. Having said that, the statute does not preclude legal fees either. I have seen many instances where associations have demanded, and received, payment for legal fees.

Can you say if legal fees are allowed?

2011-03-10T23:05:51.473-06:00

Can you say if legal fees are allowed?

Hi Eric, I understand your concerns. Unfortunate...

2011-03-10T13:14:14.718-06:00

Hi Eric,

I understand your concerns. Unfortunately, since I don't represent you, I cannot provide specific legal advice. I strongly suggest you contact the attorney handling the transaction on your behalf for assistance!

Thanks, and can they add legal and late fees to th...

2011-03-10T13:11:16.399-06:00

Thanks, and can they add legal and late fees to the 6 months?
I have a situation now where they filed a lien against the owner in March 2009 for $1409. My assumption was that they would have filed the lien for the full amount owed by the owner plus fees. So because the statute refers to the 6 months preceeding legal action only I thought that $1409 would be the max I would owe.
Now when I buy at auction they say I owe $4400 including attorneys fees and late fees and more assessments.

Hi Eric, Typically, the association is allowed to...

2011-03-01T16:26:29.823-06:00

Hi Eric,

Typically, the association is allowed to collect back assessments (that is, if they're otherwise legally allowed to collect them) regardless of the amount of rental income they may have received from the unit. I have not personally heard of a situation where the association has been precluded from collecting assessments because they have already been "compensated", so to speak, by rents received. Of course, this doesn't meant that it hasn't happened, or that it can't happen. Parking fees, particularly if they're considered or treated as "assessments", are recoverable as back assessments.

Thank you for continuing to answer questions about...

2011-02-24T21:46:46.264-06:00

Thank you for continuing to answer questions about this article.
I purchased a condo at a Sheriff Sale and the Assoc wants me to pay 6 months back assessments and parking fees.
The unit was vacated by the owner several months ago and the Assoc has been renting it out.
#1- Does the fact that they are collecting rent and more than making up for the lost Assessments change the 6 month rule?
#2- I assume the parking fee would apply to the owner's car. If he had vacated, he shouldn't be being charged a parking fee right? SO I shouldn't have to reimburse it?

Thanks

Real estate law varies from state to state. My of...

2011-02-08T11:07:22.621-06:00

Real estate law varies from state to state. My office is based in Illinois. I suggest you contact a Florida attorney specializing in real estate to assist you!